Public Markets 8 Hours

Last updated: May 13, 2026, 11:30 AM ET

Inflation, Geopolitics, and Macro Stress

Markets digested fresh evidence of persistent price pressures as the Producer Price Index jumped at its fastest pace in four years, following closely behind surging consumer prices, prompting the Dow industrials to slip. This inflation anxiety pushed the U.S. 10-year Treasury yield to its highest level since July, fueling bets on higher interest rates, even as HSBC strategists suggested that strong earnings recovery could still propel stocks higher. Meanwhile, global tensions, particularly the ongoing Iran conflict, are straining emerging markets, with Turkey depleting foreign reserves at a record pace in March and Fitch Ratings slashing Bangladesh’s outlook to ‘negative’ due to high vulnerability to Middle East shocks.

Energy Markets Under Supply Strain

The Middle East disruption continues to dictate energy market movements, with the International Energy Agency (IEA) warning that global oil inventories are falling at a record pace due to supply constraints. Saudi Arabia reported to OPEC that its own crude output sank further last month to the lowest since 1990 amidst the Iran war, while satellite imagery confirmed that oil jetties at Iran’s Kharg Island remained empty Tuesday. This supply shock caused OPEC to cut its global oil demand forecast, while North Sea oil traded at a discount for the first time during the conflict, suggesting easing immediate fears as traders awaited developments ahead of the Trump-Xi summit.

Corporate Dealmaking and Investment Shifts

Activity in the mining sector saw major consolidation as Equinox Gold and Orla Mining agreed to merge in a deal creating a $18.5 billion North American gold giant, with the finalized transaction valuing Orla at $5.1 billion. Separately, Agnico Eagle Mines announced a massive C$14 billion ($10.2 investment in Ontario, marking one of the largest private sector commitments in the province's mining history. In private markets, PE-owned life insurers are reportedly piling into higher-yielding alternative credit, while Blackstone Inc. withdrew from a $4 billion deal with New World Development after failing to secure management control.

Tech, AI, and Geopolitical Meetings

Anticipation built around the summit between President Donald Trump and Chinese President Xi Jinping, which investors viewed as a key determinant for technology stocks, with Nvidia and Tesla executives joining the presidential trip. Chinese AI stocks surged on supply optimism following reports that Jensen Huang’s presence in Beijing might secure future H200 chip supplies, though Chinese tech giants like Alibaba saw profitability remain under pressure amid heavy AI investment. In Washington, the lobbying efforts for AI regulation are intensifying, with firms like OpenAI and Anthropic opening new offices to engage federal lawmakers.

Financial Sector and Regulatory Moves

In finance, alternative asset manager Golub Capital named co-CEOs for the first time, appointing David Golub alongside his brother Lawrence, as the firm undergoes leadership expansion. Meanwhile, Wells Fargo is marketing a three-part investment-grade bond offering a month after reporting weaker first-quarter results. In Europe, Lone Star-owned IKB is exposed to the collapse of UK mortgage firm MFS, illustrating contagion risks in the financial system, while BlackRock advised that state and local government debt markets are becoming “less forgiving” amid credit concerns.

Political Turbulence and Sectoral Influence

Political developments overseas created immediate market volatility, as chaos erupted in the Philippines Senate where a senator allied with former President Duterte faced arrest, with live television broadcasting sounds of gunshots from within the chamber. On the regulatory front, the tobacco industry secured a favorable outcome in a vape dispute after the President sided with industry donors over his FDA commissioner, while the administration confirmed that businesses would begin receiving refunds for approximately €160 billion in previously collected illegal tariffs. Separately, in a highly unusual political development, the conviction of Alex Murdaugh was overturned by South Carolina’s top court citing jury interference by a court clerk.